In today’s briefing:
- Radico Khaitan: Forensic Analysis
- Voltas Ltd (VOLT IN) | Competition Casualty
- Bajaj Auto Ltd (BJAUT IN) | EV & Exports Optionality
- Torrent Pharmaceuticals (TRP IN): Strong Domestic Foothold; US Business Reviving
Radico Khaitan: Forensic Analysis
- Radico Khaitan (RDCK IN) had succeeded in getting de-leveraged to a strong extent, as mentioned in our previous insight, Radico Khaitan Limited: On the Path of Getting Debt Free
- The company has entered into the new capex phase and has accumulated some debt, the annual report F22 also highlights few irregularities on the forensic side.
- These include complex structure for land purchase, receivables provisioning, deviation between RoU and lease assets, etc.
Voltas Ltd (VOLT IN) | Competition Casualty
- Voltas Ltd (VOLT IN) has experienced a decline in revenue due to a slowdown in demand, increased competition, and higher commodity prices.
- The Voltas Beko brand has been a ray of hope for the company, with strong growth in demand and market share.
- While there may be an upside in volumes as capex kicks in, but better to be on the sidelines until there is a change in the structure of the industry.
Bajaj Auto Ltd (BJAUT IN) | EV & Exports Optionality
- Bajaj Auto Ltd (BJAUT IN) is optimistic about the future of their exports and expects a recovery in exports as a critical catalyst for the stock over the near term.
- The company’s EV endeavors in both 2-wheelers and 3-wheelers are expected to surprise on the upside, which can deliver upside than what is currently factored in.
- The stock also trades at undemanding valuations (16x FY25 consensus estimates), offering adequate comfort with an optionality of EV and Exports.
Torrent Pharmaceuticals (TRP IN): Strong Domestic Foothold; US Business Reviving
- Torrent Pharmaceuticals (TRP IN) continues to report double-digit revenue growth from India business. Leadership positioning in chronic therapeutic areas underpinned by Curatio acquisition is driving the domestic business.
- The company expects the India business to continue its growth momentum, backed by new launch, top brand performance, increase in field force productivity, and continued performance of Curatio portfolio.
- The U.S. business also witnessed revival in FY23 after a downturn in FY22, which should provide impetus to the company’s bottom line to a great extent.
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